FAQ by analysts in 2014

Q: What is your position in the cloud market and what are the measures you plan to take to ensure the position as the preferred digitalization partner?

With our leading-edge innovation is cloud-based infrastructure services, we are well in line with the market change, or in Managed Services ahead of competition. The share of our private cloud –based IaaS and Paas offerings was around 10% of Managed Services sales in the full year while the share rose throughout the year and was 13% in the fourth quarter. In Industry Products, the share of “pay as you use” models are gradually increasing.

Q: What kind of companies are you interested in acquiring?

One key criteria is the strategic fit. Any potential target should support our objective to grow in new service areas and Tieto’s value creation.

Q: How will you be able to improve results in an environment with salary inflation and price pressure?

The whole IT industry is changing and based on increased automation and standardization, IT services companies are able to continuously improve efficiency of deliveries. As we also drive automation and many of our services are becoming less labour intensive, we continue to identify cost savings potential. Additionally, we also continue increase offshoring and improve quality.

Q: How will you use your cash flow – will you consider improving dividends or repurchase your own shares?

According to our financial targets, we aim to annually increase dividends in absolute terms. In 2014, we also proposed an extra dividend. While we will develop our capital structure, we also want to maintain our financial flexibility to invest in growth, both organically and inorganically.